If PSUs cannot refine Cairn’s crude from Rajasthan block due to capacity & technological constraints, and if the private Indian refineries refuse to pay the right price for crude, then Cairn seeking permission for export is both natural and appropriate.
And the government will also benefit from such export because it will get a major part of the increased profits as its shares, higher royalty, etc., which is worth about $425 million a year. In such a situation, the government should have granted permission quickly. But, unfortunately this did not happen. Since 2009, Cairn has attempted it, but has failed. And now it is seeking legal remedy. It filed a case in December 2015 before the Delhi High Court. The court is hearing the matter on urgent basis. So far the proceedings indicate a positive outcome for Cairn and the government will be the major beneficiary. But, that should have happened without court’s intervention. And the government should have resolved this issue internally between petroleum & commerce ministries. That would have been a live example of “good governance” of this government. Read our cover story on this issue.
On the other hand, a final ruling, on a complaint filed by the United States before the WTO challenging our government’s policy for domestic contents requirement in the solar power panels being purchased under different schemes, is expected any moment. So far indications are that the ruling would be adverse and the Indian government is ready to modify its solar subsidy scheme and restrict its use only for government organizations such as Railways, Defence, etc., and may not sell the power generated from such subsidized panels for commercial use. We have reported on these developments in detail.
We also bring to you further details on Hydro Power Scam in Uttarakhand by Lanco/Greenko. In this, the private genco will be paid Rs 4 a unit by Uttarakhand Power Corp Ltd after obtaining authorization from Uttarakhand Electricity Regulatory Commission. We have now got copies of the agreements that reveal Lanco had agreed to supply power to Haryana at Rs 2.21 per unit (levelised rate over 35 years) from the same hydro plant. This means Uttarakhand will be paying Rs 1,460 crore more compared to Haryana for the same amount of electricity from the same plant. And for ensuring these corrupt arrangements, Greenko will pay Rs 133 crore to Lanco.
